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County's share of state money tops $5 million

The state has given Elkhart County $2 million following a miscalculation involving local tax money.

Angelle Barbazon

Posted on April 14, 2012 at 1:00 a.m.

GOSHEN — Elkhart County government has added nearly $2.4 million to its bank account following a miscalculation by the state involving local tax money.

The county has claimed its share of funds that the state distributed after discovering a $205 million error. The slip-up has resulted in the money being divided among counties, cities, towns, school districts and other taxing units that count on income tax for financial support.

The total money coming to Elkhart County and its municipalities, schools and libraries is $5.16 million. The funds include money from the county adjusted gross income tax, or CAGIT, and the county economic development income tax, or EDIT.

Local officials are welcoming the unexpected CAGIT funds totaling $1.15 million, but say the money will be used to play a game of catch-up.

“There isn't any money for new projects,” Elkhart County Council president John Letherman noted. “I hope we will be able to use this for the rest of the year without having to tap into our rainy day money.”

The county government has also gained $858,650 for its jail CAGIT fund, which helps cover debt service and other expenses for the county lockup.

The state has given EDIT funds to the county government totaling $380,792. That money has traditionally been reserved for road projects.

“We hope to keep it that way because we really need help on highway maintenance,” Letherman said.

The county's six libraries will receive $226,368 in CAGIT funds, and the school districts will get $369,106. The county's 16 townships will get $207,324.